There’s a ton of properties to view this weekend from condos to mansions! Check out this link to get an idea of what area you would like to explore and go view some properties.

https://www.vreb.org/open-houses#gsc.tab=0

There’s a lot  to know when it comes to buying and selling properties with tenants. Luckily we have Ilana Pretoruis, a skilled Realtor and Property Manager to guide us all through the ins and outs of tenancies in Real Estate!

1. Are you purchasing a property to have fully tenanted or partially tenanted? You will need to make sure you are well versed with the Residential Tenancy Act in BC. As a Property Manager and Realtor this is part of every day for Ilana. She is our go to for everything and every question tenancy related.

2. Have you checked with the local municipality to make sure the property is zoned for suites? 

3. Ensure that any property with a suite has had a proper inspection to make sure the plumbing and electrical are up to code and safety measures are met.

4. When purchasing a property make sure you review any rental agreements currently in place. Is there a lease? Is the tenant month to month?

5. Tenants come with the property. You are not allowed to evict them to then turn around and rent out the property for a higher rent. So make sure that if you are purchasing the property with a tenant in place that you can make the financial numbers make sense for your purchase. Ensure that you are credited the tenant’s damage deposit on the Statement of Adjustments, and that the deposit has been accruing interest as per the RTB calculator. On possession of the property make sure you do a suite walk through so that you know the current state or you won’t be able to withhold the damage deposit should there be any damages incurred to the suite when the tenant vacates.

6. The only way to get vacant possession of an entire property that has tenants is if the purchaser and direct family members (parents, spouse, or children) will be occupying the main home and suite(s). As of November 2024, the tenants must be given 3 months notice to vacate plus last month’s rent free. Notice to vacate as per the RTB, is served with final condition removals. The notice must give ample time for the tenant to receive before the day the next month of tenancy begins. For example if the rent is due the first of every month, notice is best served before the 25th so the tenant has a week to receive the notice. If there is a lease in place, the purchaser cannot have the lease end early unless there is a Mutual Agreement to End Tenancy signed by the current Owner and the Tenant.

There’s a lot to know! Make sure you are fully comfortable and informed when buying or selling tenanted properties. Ilana is the absolute best and is here to help with all your real estate needs!

Thinking about buying a pre-sale in new construction? There’s a few things to consider.

As a buyer there are some risks included in pre-sales. It is very important to have  a realtor you trust to help you fully understand the process. 

1. A pre sale is a concept or an idea. You cannot see or touch it. Have your realtor accompany you to the showhome to get a good idea of what is planned, understanding that the developer can make modifications and change supplies or materials used due to cost and availability. Ask lots of questions to the developer’s  representative in the showhome,  not all units come with parking and storage and the developer can unilaterally assign parking and storage so this needs to be specified in a contract of purchase and sale. Make sure that parking and storage are not part of a sub-lease the developer has.

2. Make sure you  understand the financial requirements. Does the purchase  price include GST, PST or have any tax exemptions? Understand that over long completion times prices to build can change in terms of materials and  supply but also in labor availability. There are no hold-backs allowed for deficiencies, developers do not want to have unhappy new home owners so problems will be addressed but it may take time to complete any deficiencies. 

3. Make sure you understand the deposit process. When you pay your deposit, it is paid to the developer’s lawyer, not your realtor’s  brokerage to be held. Check to see if there is a provision in the contract of purchase and  sale that the developer may use the deposits if they are held in an insured fund. There is no interest accrued on deposits.  If the pre sale does not come  to fruition and  your deposit is returned, it will not have  any interest accrued on that balance. In case a buyer is unable to complete  on the purchase once the building is ready for  possession and they are in breach of  contract, the deposit will be lost to the buyer and there is the potential of being liable for damages to the developer. If the developer is unable  to finish the  project and is in breach of contract, the buyer will get their deposit back, but there are no further legal remedies.

4. No assigning your pre sale. Assignments are where a buyer is able to assign or sell their pre sale to a new buyer before the building is complete. When working with a developer there are no assignments  in pre  sales so once you commit, you are in it until the end. Occasionally developers will allow an assignment on special request. The developer can delay  approval of any assignments until the last unit is complete so they are not competing with anyone on the sales of their units. 

5. Completion is rarely on time. The building is complete when it is complete. Period. Buyers are given 14 days notice of completion so you need to keep your financial situation ready from the time you put down the deposit  until the building is ready for possession. The completion date is not a guarantee, so never bank on the one stated in the contract of purchase and sale. Even if the developer misses the last outside date, they can still be granted extensions so a buyer is stuck  until the building does complete. 

6. Always remember that the Disclosure Statement a buyer receives prior to entering a contract of purchase and sale can and likely will be amended many times. The Disclosure Statement is not a part of the contract of purchase and sale but is a part of the marketing.

7. Always always have a lawyer review the contract of purchase and sale before you commit so that you understand the legal jargon and  requirements of buying into a pre sale. As realtors we  have amazing lawyers we work with and we are happy to help with this!

With the cooler weather here people are switching from vacation mode back to normal life and back to real estate. Our team is here to help, so get in touch with us at info@stiegandmanning.com to stay up to date on new listings in your favorite areas so we can help you find your dream home!